Political Risk Latin America Blog @PolRiskLatam

Brazil’s Vale names new CEO under government pressure

Posted in News and Articles, Political Risk by politicalrisklatam on April 5, 2011

by Brian Ellsworth and Denise Luna for Reuters, April 5th, 2011.

Brazilian mining giant Vale (VALE5.SA) named a new chief executive under withering government pressure, a move that may spark fears of state meddling in Brazil’s private sector but is not expected to dent investor confidence in the firm.

Former Vale executive Murilo Ferreira, who returns to the company as CEO on May 22, will have to placate politicians’ desires for more investment in steel mills while providing the massive returns delivered by outgoing CEO Roger Agnelli during his ten years in office.

Agnelli, who helped turn Vale into the world’s largest iron ore miner, will leave the post after years of criticism by political leaders that he was not doing enough to spur Brazil’s economic development.

“Murilo Ferreira was indicated by the controlling shareholders from a list of three prepared by an international executive search firm,” Vale said in a statement.

Vale’s board will still have to approve the appointment, the company said.

Ferreira, 58, joined Vale in 1998 in its aluminum division and later went on to lead the Canadian nickel operations that the company bought in 2006. (continue reading… )

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